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There have been mixed reactions online to the specifics of new Colts linebacker D'Qwell Jackson's contract.

The veteran, who signed a free-agent contract today worth four years and $22 million, is getting up in age and it's fair to wonder whether he can continue to be the player he has been.

But from a financial standpoint, the criticism of this contract seems overblown. You can start with the fact that the Colts were bidding against several other teams, which is always going to inflate the number you must pay to land a free agent.

But more important, a look at the structure of this contract reveals that it's a deal that works well for the Colts, provided Jackson performs on the field.

The most important facet: We're told by someone in the know that the overwhelming majority of Jackson's $11 million in guarantees is limited to the first two years of the contract. The guarantees are tied mostly to roster bonuses and base salary. Only a minimal amount – I'm still waiting to hear the exact figure – will be paid in the form of traditional signing bonus.

Why is that important?

Because it gives the Colts flexibility. Take, for instance, the worst-case scenario: Jackson plays poorly or suffers a significant injury. In such a situation, the Colts could cut their losses after two seasons with few salary-cap implications. Had Jackson received a large signing bonus, a prorated amount of that bonus would have been applied to his salary-cap number for each of the contract's four years.

The way the deal is written, it gives him – again, provided he's still playing well – better odds of actually finishing the contract. That's because he won't have high cap numbers in the deal's third and fourth years. Meanwhile, that gives the Colts the flexibility they seek when looking to re-sign quarterback Andrew Luck because it helps keep their salary-cap situation manageable.

This is an example of what I referenced in this story last week. The Colts have vowed to be cautious in their spending during free agency, but there are ways to spend money and still protect your long-term interests – especially when you have tons of cap space.

That's what the Colts did here, and that's why this deal makes a lot of sense for all involved.